Transcript Document

Task Force on Modernizing Income Security for
Working Age Adults
(MISWAA)
Process, Highlights of Research and Recommendations
June 2006
Introduction
Formed in the fall of 2004 by the Toronto City Summit Alliance, a broad-based
coalition of civic leaders in the Toronto region, and St. Christopher House, a multiservice neighbourhood centre that works with low-income people in Toronto.
Steering Committee of over 50 representatives from major employers, labour unions,
policy institutes, academia, community organizations, advocacy groups, foundations,
governments1, and individuals with first-hand experience of income security
programs.
While the diverse group didn’t achieve consensus on all proposals, members are
united in the belief that the current income security system is broken and that all
orders of government must come to the table to secure the needed reforms.
Task Force report to be released in May 2006 followed by a communication effort to
broaden the coalition and advocate for change.
(1) Government members participated in an ex-officio capacity
-1-
Process
Three Key Objectives Of The Task Force
To provide a clear, soundly supported assessment of Ontario and Canada’s income
security systems and programs, grounded in the experience of those affected
To develop pragmatic proposals for policy and program changes for governments
to improve the economic security of low income, working age adults- focusing on
Ontario in a national context
To design Ontario and pan-Canadian communication campaigns to help ensure that
proposals for governments are put into motion.
-2-
Process
Sources Of Funding (All Non-Government)
The Atkinson Charitable Foundation
KPMG
The Laidlaw Foundation
The Law Foundation of Ontario
The Maytree Foundation
The JW McConnell Family Foundation
TD Bank Financial Group
The United Way of Greater Toronto
The Atkinson Charitable Foundation provided the seed money to set up the
Task Force and is lead sponsor
-3-
Process
Organizations Involved In MISWAA1
Ace Bakery
Atkinson Charitable Foundation
Bain & Company
The Boston Consulting Group
The Caledon Institute
CCSD
Cdn Inst. For Advanced Research
Canadian Labour Congress
CPRN
Canadian Urban Institute
C.D. Howe Institute
Ctre for Addiction & Mental Health
Citizens for Public Justice
City of London
City of Toronto2
Community Legal Services
Conference Board of Canada
CUPE
Daily Bread Food Bank
Dickson, MacGregor, Appell LLP
Falconbridge Limited
(1)
(2)
Family Service Assn of Toronto
George Brown College
George Weston Ltd.
Goodmans LLP
Income Security Advocacy Centre
Indept Policy Analysts and Activists
KPMG
Laidlaw Foundation
Labour Education Centre
The Maytree Foundation
Min. of Com. and Social Services2
Min. of Labour and Housing2
Munk Centre for Intern’l Relns, U of T
National Judicial Institute
Nestle Purina Canada
OCAS
Ontario, Office of the Premier2
Policy Research Initiative2
PricewaterhouseCoopers
Queen’s School of Policy Studies
Regent Park Community Council
Ryerson University
St. Christopher House
Scotiabank
SEDI
SRDC
Tamarack Institute
TO & York Reg’l Labour Council
Toronto City Summit Alliance
Toronto Community Foundation
TD Bank Financial Group
Toronto Police Service
United Way of Greater Toronto
University of Montreal
U of T School of Social Work
United Jewish Appeal Federation
US Urban Institute
Mercer HR Consulting
Workers Action Centre
Yee Hong Centre
York University
Includes organizations of both Task Force and Working Group members; See Appendix for lists of members
Ex-officio members or observers
-4-
Process
Structure And Roles Modeled On TCSA And St. Christopher
House Initiatives
Multi-Sector Task Force1
• Civic Leaders
• Heads of Institutes and Frontline Agencies
Consider issues and agree on
recommendations
• Or acknowledge differences
Be ambassadors for reform
Community
Consultation
• Low Income Adults
• Front-line agencies
Working Group & Secretariat1,2
• Policy Experts
• Low Income Adults
Review research; fill gaps
Identify issues and options
Develop and cost solutions
(1)
(2)
See Appendix for lists of members
Small Secretariat consists of: Project Director, Research Director, Admin Coordinator, and Community Consultation Leaders
-5-
Process
Community Reference Group And Consultation Process
Informed The Research Effort And Task Force Discussions
Formed Community Reference Group of low income adults; met monthly throughout the
process to discuss issues and evolving recommendations
• Members included social assistance recipients and low income workers
• Members also joined the Working Group and participated in working sessions on
specific issues, e.g.: improving ODSP; supporting the ‘hard-to-employ’
Consulted on evolving recommendations with more than 250 low income adults in
fourteen workshops across the Toronto region
• Groups included English-as-a-Second language classes, unemployed youth,
tenants in social housing, diverse women’s and ethno-racial groups
Consulted with 286 front line staff and volunteers from community service organizations
in meetings convened by MISWAA, MISWAA members and interested agencies
Documented and integrated input from community consultations into the Working
Group’s research effort and Task Force discussions
• Similar diversity of views to Task Force and Working Group
• Most interest in removing impediments to working and ‘de-stigmatizing’ welfare
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Research Highlights: Context
Context From The Research Effort
891K working age adults living in low income in Ontario1
•
Est. 280K adults work full-time, earn $10/hr or less and live in low income
•
219K adults with Ontario Works (OW) as primary income source
•
245K adults with Ont. Disability Support Program (ODSP) as primary income
$37B spent on income security in Ontario
•
Federal government dominates with 80% share; significant fiscal capacity
•
Province funds 18% and municipalities the remaining 2%
•
Majority of funding goes to seniors (48%), while social assistance (OW and
ODSP) for working age adults represents only 10% of funding
Benefits and supports to working age adults retracting; 1993 to 2005/06 trend•
OW down -24.5% nominal (-46.1% real); ODSP up +3.0% nominal (-24.5%
real); recent increases were the first since major reductions of 1995
•
Minimum wage up +22.0% nominal (-2.5% real) vs. avg. wage up +26.7%
(1)
Working age adults are age 18 to 64
Sources: Cited below the charts on following pages
-7-
Research Highlights: Context
891,000 Working Age Adults Living In Low Income In
Ontario; Approx. Half Receive Social Assistance
891K Working Age Adults1
=100%
% 100
90
16%
Other2
80
70
24%
OW Recipients
28%
ODSP Recipients
60
50
40
30
20
32%
10
0
Low-income Adults
Full-time
Working Poor3
213K Households 200K Households
=100%
=100%
% 100
90
80
70
60
50
40
30
20
10
0
15%
11%
Couples
37%
Lone
Parents
52%
Singles
8%
77%
ODSP
Recipients
Ont. Works
Recipients
(1)
Working age adults are 18 to 64 years old
(2)
Other includes part-time workers, self-employed, EI recipients, homeless persons, or unemployed not receiving social assistance or EI
(3)
Est. to be 5.1% of the paid labour force of 5.5M based on 11.6% of Ont. Workers being low-wage and 44.1% of low-wage workers living in low income
Sources: Total from the Caledon Institute based on Statistics Canada data for 2004; Full-time Working Poor est. based on Statistics Canada data for 2004 from
recent paper: Low Wage and Low Income; OW and ODSP data from Ont. Ministry of Community and Social Services’ Qrtrly Statistical Reports
-8-
Research Highlights: Context
Income Security In Ontario Is Primarily Under Federal Control;
Seniors Dominate Spending
Percent Of Income Security Program Spending In Ontario in 2004/05
($36.7 Billion1,2 = 100%)
By Order Of Government2
By Recipient Type
Municip'l approx 23% of total
budget on ISWAA
Othe r
Ont.
Wor k s
2%
Pr ovinc'l
approx 12% of total
budget on ISWAA
5%
18%
Childre n
9%
Em pl.
Ins .
80%
Fe de ral
49%
10%
17%
approx 12% of total budget on ISWAA
(1)
(2)
Note:
10%
Dis able d/
Injure d
Se nior s '
Doesn’t include the Canada Social Transfer (approx. $3B) from the Federal government to Ontario
Includes contributory programs (EI- $3.9B and Workers’ Compensation- $2.5B)
See back-up on next page for details and sources
-9-
Research Highlights: Context
Income Security For Working Age Adults Down Precipitously
In Nominal And Real Terms
Benefit Unit &
Type
1993
Rate/Mo.
2005
Rate/Mo.
Nominal
Change
Real
Change
Single On
Welfare (Basic
+ Shelter)
$663.00
$536.00
-19%
-46.1%
Single On
Welfare (No
Shelter)
$369.00
$201.00
-45%
$1,221.00
$990.00
$930.00
Couple With
Two Children
On Welfare
Employment
Insurance1
Lone Parent
With One Child
Single With
Disabilities
Changes
Since’93
Rate Chge
Policy
Frequency
Two:
-21.6%(‘95)
+3.0% (‘05)
No formal
policy
+2.0% in
Nov.’06
-70.0%
Three: 2
reductions
+3.0% (’05)
No formal
policy
+2.0% in
Nov.’06
-19%
-46.1%
Two:
-21.6%(‘95)
+3.0% (‘05)
No formal
policy
+2.0% in
Nov.’06
$958.00
+3.0%
-21.5%
One:
+3%(’05)
No formal
policy
+2.0% in
Nov.’06
$1,530.00
$1,200.00
-19%
-46.1%
Two:
-21.6%(‘95)
+3.0% (‘05)
No formal
policy
+2.0% in
Nov.’06
$1,145.34
$1,374.71
+15.9%
- 8.6%
numerous
Unclear
Unclear
(1) Employment Insurance rates are for average benefits in Ontario from Jan. 1993 to Jan. 2006
- 10 -
Research Highlights: Context
Low Wage Earners Haven’t Kept Pace With Average Wages
Or Inflation
Benefit Unit &
Type
1993
Rate
2005/06
Rate1
Nominal
Change
Real
Change
Changes
Since’93
Rate Chge
Policy
Average
Wage
$2,657.32
Per month
$3,369.42
+26.7%
+2.5%
Market
N/A
Minimum
Wage
$6.35
Per hour
$7.75
+22.0%
-2.5%
5
$8.00
by 20072
Reg’l Increase
2004 to 2007
Minimum
Wage F-T
(40 hrs/week)
$1,100.67
Per month
$1,343.33
Per month
+22.0%
-2.5%
5
$1,408.00
by 2007
Reg’l Increase
2004 to 2007
Minimum
Wage At Avg
Hours
(32 hrs/week)
$880.53
Per month
$1,074.66
Per month
+22.0%
-2.5%
5
$1,072.00
by 2007
Reg’l Increase
2004 to 2007
(1)
(2)
Frequency
N/A
Average Wages for 2006 estimated at +3.5% above the 2005 average; minimum wage increased from $7.45/hour to $7.75/hour in Feb. 2006
The 2004 through 2007 increases to minimum wage followed over a decade with no increases. No policy or mechanism is in place to monitor minimum
wage or increase it beyond 2007
- 11 -
Research Highlights: Issues
Key Issues From The Research Effort1
Many working people can’t earn enough to sustain an adequate standard of living,
particularly in major urban centres- both a ‘supply and demand’ problem
Employment Insurance (EI) no longer provides a safety net for majority of the
temporarily unemployed; particularly in Ontario and Toronto
Many fall onto social assistance and get trapped in a punitive system that
impedes achieving stable employment or meaningful community participation
There is both a social and economic urgency to addressing these issuesespecially before the next recession puts Ontario municipalities at risk
(1)
Issues list is ‘high level’ and numerous issues underlie each of the key issues cited. Also considered specific issues of particular interest to MISWAA
sponsors, e.g.: issues facing youth leaving care, and drivers appeals of decisions relating to social assistance, particularly ODSP eligibility
- 12 -
Research Highlights: Issues
Many Working People Can’t Earn Enough To Sustain An
Adequate Standard of Living
Average Income and Expenditures for Working Poor Families1
Avg. Expenditures2
$16.9K
$K $18
- $4.0K
Shortfall
$12
17%
Other
33%
Necessities
50%
Basic
Needs
Avg. Income
$12.9K
2%
Other
23%
Govt.
Transfers
75%
Earnings
$6
$0
In co me Sou r ces
Exp en d itu r es
(1)
(2)
Income and expenditures have been adjusted for family size using a LIM equivalent scale to reflect that family needs increase with family size
Basic Needs include shelter, food and clothing; Necessities include transportation, health care, childcare, personal care, household ops, taxes, insurance; Other
expenses include furniture, recreation, tobacco and alcohol, gifts, etc
Source: Dominique Fleury, Myriam Fortin and May Luong, What Does it Mean to be Poor and Working? An Analysis of the spending patterns and living conditions of working
poor families in Canada, 2005, based on Statistics Canada’s 2002 Survey of Household Spending
- 13 -
Research Highlights: Issues
EI No Longer Provides A Safety Net For Majority Of The
Temporarily Unemployed
Percentage of Unemployed Receiving EI Benefits, by City, 2004
St. John’s
Saguenay
Quebec
St. John
Sherbrooke
Trois-Rivieres
Halifax
Thunder bay
Montreal
Sudbury
St. Catherine’s
Kitchener
Edmonton
Winnipeg
Saskatoon
Regina
Vancouver
Calgary
London
Oshawa
Hamilton
Windsor
Toronto
Ottawa
22% in Toronto
0
10
20
30
Ontario Avg.
40
National Avg.
50
%
Source: Caledon Institute of Social Policy and Statistics Canada
- 14 -
Research Highlights: Issues
OW Recipients Down Significantly Leaving Population With
High Duration; Different Segments Require Different Supports
Historical Trend in OW Cases
Cases
(000’s)
500
450
Months
40
400
35
350
30
300
25
250
Avg. Months Receiving OW by
Family Type; Toronto 2004
20
200
150
15
100
10
50
5
0
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Singles
Lone
Parents
Couples
Couples
W it h
Children
Tot al
Cases
Estimate that one-third to two-thirds of the caseload is hard to serve; e.g. in Toronto:
• 36% left OW in 2004; 27% received OW for more than 7 months at any point in time
Source: Ontario Ministry of Community and Social Services’ Quarterly Statistical Reports for Dec. of each year; City of Toronto’s Ontario Works Statistics for 2004
Note: Other factors driving high duration include low education level, large family size, age of youngest child (duration highest for parents with children age 9+)
- 15 -
Research Highlights: Issues
Many Impediments To Moving From Social Assistance
To Working
A lone parent who leaves social assistance for a job paying $10/hour will experience
the following:
•
Loss of social assistance benefits for adult and each child
•
Increased childcare expenses
•
Loss of basic dental coverage for the children
•
Loss of prescription drug coverage that doesn’t require payment upfront
•
Loss of back to school benefits
•
Loss of winter clothing allowance
•
Becomes ineligible for special diet allowances where required
•
Loses community start-up benefits for a medically necessary move
He or she will begin to pay net federal taxes at approx. $1,600 a month net income
Her or his Ontario sales tax credits could be reduced.
- 16 -
Research Highlights: Issues
High Marginal Tax Rates At Low Incomes Due To Benefit Loss
When Moving From SA To Work And As Incomes Increase
Marginal Effective Tax Rates in Ontario (%) in 1996 and 2000
For One Earner Couple With Two Children on Social Assistance
Marginal
Tax Rate %
120
120
1996
100
2000
100
80
80
60
60
40
40
20
20
0
0
-20
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
-20
100,000
Income $
Source: OECD, Economic Surveys Canada, 1999-2000, cited in Lightman, Ernie. Social Policy in Canada. Toronto: Oxford University Press, 2003
Note from Prof. Ernie Lightman: “The OECD indicates that these data don’t include loss or reduction of in-kind benefits (e.g.: extended health care, subsidized
rent, or child care) as incomes rise- which would raise the marginal tax rates for low income households even higher, in excess of 100% in some cases”
- 17 -
Research Highlights: Issues
Ageing Population To Decrease Labour Force Participation
Constraining Economic Growth
Canadian Labour Force Grow th Proj ected to Flatten
4.0 Y/Y % change
3.5
Forecast
3.0
Fewer Working Canadians to Support
Growing Numbers of Retirees
2.5
2003
2.0
1.5
1.0
2030
Labour Force Participation 67%
60%
Old-age Dependency Ratio1 5.3
2.7
0.5
0.0
-0.5
1977 1981 1985 1989 1993 1997 2001 2005 2009 2013 2017 2021 2025 2029
Source: Statistics Canada, T D Economics
Getting Canadians out of the income security trap and into the
labour force would boost all incomes
(1)
Ratio of people aged 15 to 64 to people aged 65+
Source: TD Economics: 2030 Vision- A long-Term Economic Forecast For Canada, Eric Lascelles, July 2004.
- 18 -
Principles
Principles For Reform Of The Income Security System For
Working Age Adults (I)
The Task Force envisions an income security system for working-age adults that
treats people with dignity, reinforces the value of work, and does not leave those
for whom “work is a distant prospect” to live in destitution.
A modern income security system would expect and encourage individuals to
assume personal responsibility for taking advantage of opportunities for
engagement in the workforce or in community life. That system would be guided
by the following principles:
• Everyone should have access to basic necessities (food, clothing, shelter, and
personal hygiene) through an appropriate mix of personal resources including:
earnings from work, insured services (e.g. health), income security, and other
supports (e.g. access to affordable housing and quality childcare)
• Individuals working full-time, full-year should not live in poverty.1 They should
have a decent standard of living and they should be financially better off
working than not working
(1)
Note: Average hours for minimum wage workers fall short of full-time hours at 31 to 32 /hours per week versus 37.5 to 40 hours for full-time
- 19 -
Principles
Principles For Reform Of The Income Security System For
Working Age Adults (II)
• Children should not be an impediment to parents’ participation in the labour
market, and parents’ participation in the labour market should not put their
children’s well-being at risk
• Everyone should have the means to improve their situation through:
- appropriate skills training and employment supports
- decent job opportunities that meet legal employment standards, and
- opportunities for community service if work is not a viable option.
- 20 -
Recommendations
Summary Of Recommendations (I)
Multiple levers are required for a robust social safety net. We recommend the
following reforms for Canada and Ontario:
The federal government should:
• Reform Employment Insurance to address the significant decline in coverage
of the unemployed and the related decline in access to employment supports
and training.
• Create a new refundable tax benefit consisting of a basic tax credit for all lowincome working-age adults and a working income supplement for low-income
wage earners.
• Provide and administer a national disability income support program for
persons whose disabilities are so substantial that they are unlikely to enter the
paid labour force.
The Task Force also supports the recommendations made by others to increase
the National Child Benefit to an adequate level.
- 21 -
Recommendations
Summary Of Recommendations (II)
The provincial government should:
• Establish an independent body, with representation from labour and
employers, to recommend periodic increases to the minimum wage and
monitor the employment and economic effects. It should be put in place before
February 2007 when currently planned minimum wage increases will have been
completed.
• Implement an integrated child benefit platform for all low-income parents with
children that pays benefits outside the social assistance system.
• Provide basic health (prescription drugs and vision care) and dental coverage
to low-income workers.
• Strengthen enforcement of employment standards to protect the rights of
workers under the law with a focus on employers that are high risk to offend.
Up-date and expand current employment standards to cover new forms of
work.
- 22 -
Recommendations
Summary Of Recommendations (III)
The provincial government should (cont’d):
• Raise social assistance asset limits to $5,500 for a single person and $9,000 for
a family, along with other improvements in asset treatment.
• Revamp the disability determination process for the ODSP to streamline
decision-making and provide support services to applicants earlier.
• Reinstate earlier provincial policies to set disability benefits at the same levels
received by senior citizens who have no other source of income.
• Improve and expand employment supports, training and upgrading for social
assistance recipients, as well as for low-income workers.
• Provide of OW recipients who have multiple barriers to work with special
supports to encourage participation in community activities and longer-term
capacity building.
• Allow persons receiving ODSP who can work despite their disability to
participate in the labour market without jeopardizing health and dental coverage.
• Upload social assistance benefits costs for municipally delivered OW, and all
social assistance costs for provincially delivered ODSP, from municipalities to
the province.
- 23 -
Recommendations: Back-up
Supporting Points for Recommended Integrated Child Benefit
Platform
With the creation of the National Child Benefit in 1998 and its subsequent growth, benefits for
children have become very significant
All stakeholders agree with ending the “NCBS Clawback” from social assistance recipients
• Advocates believe the clawback should be ended by returning the clawed back amounts to
social assistance recipients in the form of higher social assistance payments.
• The Task Force agrees with the original objectives of the NCB, several other provinces,
Ontario Municipalities and others that the clawback should be ended by creating a provincial
platform of child benefits for all low income families with children.
Rather than having two very significant benefit programs for poor children in the form of
children’s amounts in Social Assistance; and The Canada Child Tax Benefit (CTB and NCBS)
• It proposes that social assistance child rates, the Canada Child Tax Benefit and other child
benefits all be rolled into an overall Ont. benefit payable to low income families with children.
Outcomes:
Social assistance would no longer have children’s rates, lowering the welfare wall as having
children will no longer be an impediment to securing and obtaining better employment (i.e.
children’s benefits currently under welfare would not be lost with employment)
Ontario would help pave the way for a national income platform for low income children.
The unpopular clawback would be ended.
- 24 -
Back-up
Potential Architecture For Canada’s Adult Benefits In Ontario
Target Group
Persons with
disabilities
Provincial
Improved asset treatment and
opportunity planning orientation;
residual welfare system
Provincial
ODSP benefits in line with seniors’;
revamped up-front application
process; other improvements
Related programs, e.g.: affordable housing,
immigrant settlement
Medium-to-long
term support for
‘harder to employ’
adults
Federal
Social fund; integrate emergency welfare over time
(provincial, municipal)
Short-term support
for ‘employable’
adults
Provincial
Financial literacy services (provincial, municipal)
For low income
working adults
Income-tested working income
supplement
Independent body to recommend
and monitor min. wage increases;
better enforced employment stds
‘Rebalanced’ EI coverage;
improved access to EI ‘Part II’
(employment supports, training,
maternity and parental leave)
Training and employment supports (federal,
provincial, municipal)
Federal
Basic refundable income-tested tax
benefit; some restrictions on
eligibility
Drug, dental, other health benefits (provincial)
Federal
Programs (Jurisdiction)
Child benefit platform; adequate benefit levels
(federal, provincial)
For all low income
working age adults1
Jurisdiction
New Integrated Tax Benefit Program
(1)
(2)
All 18 to 64 year olds including persons with disabilities
Independent body would include representatives from employers and labour and would monitor of effects of increases on economy and employment
- 25 -
Back-up
Refundable Tax Credit (RTC) And Working Income Supplement
(WIS): Effects On Income As Transition From SA To Working
Annual
Benefits ($)
4000
RTC
WIS
RTC + WIS
$3,000:
Max RTC + WIS
3500
3000
2500
$2,400:
Max WIS
2000
1500
$1,800:
Max RTC
1000
500
0
3,000
$5,000:
Min wage @
11.5 hrs/wek
5,500
8,000
10,500
13,000
$12,896:
Min wage @
31 hrs/wek
15,500
18,000
20,500
$21,4806:
NCBS begins
phasing out
Annual employment income ($)
- 26 -
Back-up
Effect of Potential Reform on Low Income
Single With No Children
In-Kind Benefit e.g.
dental, prescription drugs
Old5
New
Old
New
$/Month
Increase
in
Income6
$0
Limited
Available
536
667
$131
$250
Limited
Available
661
791
$130
$500
Limited
Available
786
944
$158
$750
Limited
Available
911
1,103
$192
$1,000
None
Available
1,000
1,237
$237
$1,0752
None
Available
1,075
1,324
$249
$1,4003
None
Available
1,400
1,522
$122
$1,700
($10/hour)
None
Available
1,700
1,734
$34
$1,790 at
phase out4
None
Available
1,790
1,791
$1
Monthly
Earned
Income1
Total Income
(1)
(2)
(3)
(4)
(5)
$8.00 minimum wage at February 2007 is used here
Minimum wage at average hours (31 hours)
Minimum wage full-time
Phase out point of the new tax credits is $1,790/month (above $21,480/year)
OW provides emergency coverage for adults which ceases when earned income reaches $1,072/month
and the single person becomes ineligible for OW
(6) Includes effect of repurposing the GST credit
- 27 -
Back-up
Effect of Potential Reform on Lone Parent
With One Child; Childcare Provided1
In-Kind Benefit e.g.
dental, prescription
drugs
Old6
New
Old
New
$/Month
Increase
in
Income7
$0
Limited
Available
1,100
1,222
$112
$250
Limited
Available
1,235
1,337
$102
$500
Limited
Available
1,365
1,482
$117
$750
Limited
Available
1,490
1,654
$164
$1,000
Limited
Available
1,615
1,836
$221
$1,0753
Limited
Available
1,653
1,876.5
$223.5
$1,4004
Limited
Available
1,815
1,964
$101
$1,700
($10/hour)
Limited
Available
1,965
2,088
$123
$1,790 at
phase out5
Limited
Available
2,040
2,145
$105
Monthly
Earned
Income2
Total Income
(1)
(2)
(3)
(4)
(5)
(6)
Earnings exemptions that apply to informal childcare are not included in these figures
$8.00 minimum wage at February 2007 is used here
Minimum wage at average hours (31 hours)
Minimum wage full-time
Phase out point of new tax credits is $1,790/month (above $21,480/year)
OW provides coverage for children and emergency only for adults. It continues in lone parent
case as maximum earnings level allowed while on OW is approx. $2,620/month
(7) Includes effect of repurposing the GST credit
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Back-up
Effect Of MISWAA Proposals (Before And After) On Income
Sources And Employment Supports For Four Target Populations
1. The Recently Unemployed:
• Had a steady job and lost it
• Looking for work
3. Employed at Low Wages:
• Working for less than $10 an hour and living in a low wage
household
• Can’t make ends meet
Before
• EI for 30% to 40% of income
• Social Assistance for rest
• CTB/NCBS
• Small/mixed refundable
credits
• Little prospect of minimum
wage increases
Before
• Social assistance top-ups for
few
• CTB/NCBS Small/mixed
refundable credits
• No EI
• Little prospect of minimum
wage increases
After
• EI increased
• Reduced reliance on Social
Assistance
• Integrated Child Benefit
• Refundable Credit System
• Prospect of modest wage
increases
After
• Working Supplement (WITB)
• Social Assistance role reduced
• Refundable Credit System
• Prospect of modest wage
increases
2. The Longer Term Unemployed:
• Out of work
• EI exhausted
• Looking for work
4. Never in Wage Employment:
• Persons with disabilities; some young lone parents
• Severely addicted; youth at home
• Long term unemployable; new immigrants
Before
• EI for 25% to 35% of income
• Social Assistance
• CTB/NCBS
• Small/mixed refundable
credits
• EI Part II reach-back
• Little prospect of minimum
wage increases
Before
• No EI
• Social Assistance reduced
by NCBS
• Small/mixed refundable
credits
• Limited labour market
programs
After
• EI increased
• Reduced reliance on Social
Assistance
• Integrated Child Benefit
• Refundable Credit System
• Prospect of modest wage
increases
After
• Restructured Social Assistance
with adult benefit; reduced
reliance
• Integrated Child Benefit
• Refundable Credit System
• Prospect of modest wage
increases
• Improved access to specialized
training
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Estimated Costs Of MISWAA’s Proposals
The estimated cost of the MISWAA proposal for a new refundable tax benefit for
working-age adults is $8.5 billion annually for all of Canada, including $3.1
billion annually for Ontario. There is also an incremental cost for MISWAA
proposals to the Ontario government, which is estimated to be $1.45 billion
annually.1
Provincial Costing
Federal Cos ting
Costs Per Year
(billi ons)
Basic credit
(GST repurposed)
Working credit
Total Cost
Ontario
$2.50
($0.50)
$1.10
$3.10
Jurisdiction
Rest of
Canada
$4.50
($1.20)
$2.10
$5.40
Incremental Cost Per
Year ($billions)
Canada
Total
$7.00
($1.70)
$3.20
$8.50
Child benefits
restructuring
ODSP rates
Dental
Drug
Social fund
$0.85
$0.20
$0.10
$0.20
$0.10
Total Cost
$1.45
(1) Costs for some recommendations were not included because the programs are already in place or the Task Force is endorsing the positions taken by
others (e.g. cost of proposed increase in the NCB), or the data necessary to do the costing wasn’t available (e.g. cost to reduce hours of eligibility for EI)
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Areas Where Some Task Force Members Have Alternative Views
Matters of principle, e.g.: what constitutes adequacy and roles of society, the
individual, the labour market and the income security system in delivering it
Extent and specificity of EI reform (rebalanced coverage or uniform entrance
requirements; reduced hours for eligibility versus minimum 360 hr. requirement)
Income supplementation combined with modest minimum wage increases (versus
significant minimum wage hikes in near term)
New tax credits (versus large social assistance benefit increases)
Common platform for Federal and Provincial children’s benefits (versus
increasing children’s benefits in social assistance)
Which level of government should design and deliver new income security
programs (most believe that the federal government should play a larger role but
some believe that provinces are better positioned)
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Task Force Members
Co-chairs
David Pecaut – Chair, Toronto City Summit Alliance;
Senior Partner, The Boston Consulting Group
Susan Pigott – CEO, St. Christopher House
Members
Ken Battle – President, The Caledon Institute2
Jill Black – MISWAA Project Director; J.E. Black & Co.
Peter Bleyer, Exec. Dir., Canadian Council on Social Development
Paul Born - President, Tamarack Institute
Bob Brown – Ex-Chair, PricewaterhouseCoopers
Joanne Campbell – VP, Community Relations, CAMH
John Cartwright – President, Toronto and York Region Labour Council
Jacquie Chic – Director of Advocacy & Legal Services, ISAC2
Martin Connell – Chair, Toronto Community Foundation
Sue Cox – Past Exec. Director, Daily Bread Food Bank
David Crombie – President & CEO, Cdn Urban Institute
Mary Louise Dickson – Partner, Dickson, MacGregor, Appell LLP
Debbie Douglas – Executive Director, OCASI
Don Drummond – SVP & Chief Economist, TD Bank Financial Group
Rev. Susan Eagle – City Councilor, City of London2
Ken Georgetti – President, Canadian Labour Congress
Nathan Gilbert – Exec. Director, Laidlaw Foundation
Amy Go – Exec. Director, Yee Hong Centre
Anne Golden – President & CEO, The Conference Board
Malcolm Hamilton – Partner, Mercer Human Resourse Counsulting
Chaviva Hosek – Pres. & CEO, Cdn Institute For Advanced Research
Shirley Hoy1 – CAO, City of Toronto
Ahmed Hussen - Past President, Regent Park Community Council
Warren Jestin - Senior Vice-President & Chief Economist, Scotiabank
David Kerr - Chairman, Falconbridge Ltd.
(1)
(2)
Karen Kuwahara – President, Nestle Purina Canada
Deena Ladd – Coordinator, Workers Action Centre2
Frances Lankin – Pres. & CEO, United Way of Greater Toronto
Ernie Lightman – Prof, Univ. of TO Sch of Social Work, SANE Project2
Judi Longfield1 - Past MP, Whitby-Oshawa and Parliamentary Sec. to the
Min. of Labour and Housing
Hugh MacKenzie – Independent2
Dr. Deb Matthews1 –MPP London North Centre and Parliamentary Assist.
to Min. of Community and Social Services
Judith Maxwell - Past President, Canadian Policy Research Networks
Bill MacKinnon - Chairman & CEO, KPMG
Michael Mendelson – Senior Scholar, The Caledon Institute2
Peter Nares - Exec. Dir., Social and Enterprise Development Innovations
Marvyn Novick - Professor of Social Policy, Ryerson University
Gail Nyberg, Executive Director, Daily Bread Food Bank
Ratna Omidvar – Executive Director, The Maytree Foundation
Francois Paroyan - Snr. Dir., Labour Relations, George Weston Ltd.
Charles Pascal – Exec. Director, Atkinson Charitable Foundation
Bob Rae - Partner, Goodmans LLP
Bill Robson – SVP & Research Director, C.D. Howe Institute
Anne Sado – President, George Brown College
Yves Savoie – Exec. Dir., Family Service Association of Toronto
Katherine Scott, VP Research, Canada Council on Social Development
Hugh Segal1 - President, Institute for Research on Public Policy
Ed Segalowitz – VP, United Jewish Appeal Federation
Peter Sloly- Superintendent, Toronto Police Service
John Stapleton – MISWAA Research Dir.; St. Christopher House Fellow
Janice Stein – Director, Munk Centre for Int’l Relations at U of T
George Thomson – Exec. Director, National Judicial Institute
Sherrie Tingley – Social Policy Activist
Ex-officio members
Members or organizations that submitted alternative views for the Task Force’s report
- 32 -
Working Group Members
Co-chairs
Jill Black – MISWAA Project Director, J.E. Black & Company Ltd.
Pamela Loprest – Senior Research Associate, The Urban Institute
John Stapleton – MISWAA Research Dir., St. Christohper House Fellow
Susan MacDonnell, Dir. Of Research, United Way of Greater Toronto
Gillian Manning – Vice President, TD Asset Management
Members
Alan Meisner1 - Snr. Policy Analyst, Social Dev. & Admin Div., Toronto
Pedro Antunes - Dir., EconForecasting, Conference Board of Can.
Michael Mendelson – Senior Scholar, The Caledon Institute
Keith Banting – Professor, Queen’s School of Policy Studies
Andy Mitchell - Univ. of TO School of Social Work, SANE Project
Pedro Barata – Outreach and Comm., The Atkinson Charitable Fdn.
Liz Mulholland – Consultant, Mulholland Consulting
Harry Beatty – Harry Beatty Consulting
Alain Noel – Professor, University of Montreal
Juana Berinstein - Past Policy Coordinator, Workers Action Centre
Michael Oliphant – Manager, Dept. of Public Education, Policy &
Research, Daily Bread Food Bank
Sarah Blackstock, Research & Policy Analyst, ISAC
Dan Buchanan – Sigma-3 Policy Research Inc
Finn Poschmann – Assoc. Dir. of Research & Senior Policy Analyst,
C.D. Howe Institute
Janet Dassinger - Exec. Dir., Labour Education Centre
Barney Savage – Snr. Policy Advisor, United Way of Greater Toronto
Carol Deacon – Past Research & Policy Anlyst, ISAC
Ron Saunders – Dir, Work Network, Cdn Policy Research Networks
Greg deGroot-Maggetti- Policy Analyst, Citizens for Public Justice
Katherine Scott – VP Research, Cdn Council on Social Development
Rick Eagan – Community Dev. Coord, St. Christopher House
Gilles Seguin - Webmaster, Canadiansocialresearch.net
Maureen Fair – Dir., St. Chris. House Comm. Response and Advocacy
Richard Shillington – Principal, Tristat Resources
Lydia Fitchko1 - Dir., Social Policy, Analysis & Research, City of Toronto
Anita Srinivasan – Program Manager, Leadership Initiatives, Maytree
Aaron Good – Case Team Leader, Bain & Company
Anne Tweddle- MISWAA Research Analyst
Shelly Gordon - CUPE Research
Mary Webb – Senior Economist, Scotiabank
John Greenwood - CEO, Social Research & Demonstration Corporation
Tom Zizys- Consultant, Downtown East Com. Development Collective
Dean Herd – University of TO School of Social Work, SANE Project
Andrew Jackson – National Dir., Policy, The Canadian Labour Congress
Alex Johnston1 - Special Assist. - Justice Policy, Office of the Premier
Tom Klassen – Associate Professor and Coordinator of the Public Policy
and Administration Program, Dept. of Political Science, York University
Observers:
Joe Manion, Dir. Social Services, Community and Neighbourhood
Services, City of Toronto
Stuart Sykes - Policy Research Officer, Policy Research Initiative
Ernie Lightman – Prof., Univ. of Toronto School of Social Work, SANE
(1)
Ex-officio members
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